Product Strategy (Management and development)

Question 1

Positioning and its 3 options + its three risks

And what is a positioning map?

Answer 1

Positioning: The distinctive perception(position) of the product in customers mind compared to the competition.

-Social (More for more) Ex: Mercedes IMac
-Economic (Same for less) Like loblwas Pc
-Generally try to be socio-economic

Risk of positioning:
-Under position (No perception at all) Kleenex.
-Over position (Too narrow perception)
Confused positioning (Vague perception)

Positioning Diagnosis using perceptual map: the distinctive perception(Position) of the product in the customer’s mind compared to the competition. On a visual map.

Question 2

Product:
Three levels of product:

Answer 2

Product: Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.

Three levels of products:
-Core product= the essential motivational benefit the customer is purchasing, What customer wants most. Example- the benefit (safety, ease of use, affordability)

-Actual product= the physical and intangible properties/characteristics the product takes on. Its what the customer actually gets to satisfy the desire for the motivational benefit (Quality, style, branding, fashion, color)

-Augmented product= Extra attributes and features that are not part of the actual product but may be offered to make the offering more attractive. ( Warranty, delivery, services, installation, finance, customer care)

Question 3

3 components of product management decisions and the 3 ways to use them in the market:

Answer 3

Product management decisions: Portfolio structure (Width,Lentghs, Depths)
Market diversification: Width/ class/category; Commodities produced(Most innovative)
Market penetration: Length. Brand/product lines/ brands within commodities produced.
Market Development: Depth: line versions or sub-brands within lines produced. (Least innovative)(Change attributes or packaging)